Gold hovers near daily highs ahead of Fed decision

Gold prices rose sharply during the New York session on Wednesday, after data showed US durable goods orders fell more than expected in June.

Spot reached a peak of $1,329.31 an ounce before pulling back slightly. It was last trading around $1,327/oz, recording a 0.55% gain on Wednesday.

The Federal reserve will release its statement on monetary policy at 18:00 GMT, which could trigger sharp moves. Gold remains very sensitive to rate hike expectations, as they tend to lift the greenback and weigh on dollar-priced metals.